Did Amazon Win Holiday 2017?

Published on: December 27, 2017
By: Dan Muller

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Last week, we shared an analysis conducted with our sister company, InfoScout, that reviewed major retailer’s promotional share of voice against the share of wallet they captured during the critical holiday shopping period. The findings show us that while Amazon is one of the loudest retailers during the season in terms of promotions and advertising, that doesn’t necessarily correlate to consumer dollars spent. You can review the full analysis here.

But while this data shows that brick and mortar retailers got the bigger returns on their promotion and advertising dollars, Amazon would beg to differ (or steer the conversation in another direction, at least). CNN reported yesterday that the eCommerce giant claims they are celebrating their “biggest holiday” so far due to surges in Prime memberships and customers shopping on their website at “record levels” throughout November and December. The company also said that their Amazon app saw an uptick in downloads, with new users jumping nearly 70 percent this season.

So is winning the retailer holiday battle all about capturing the most end-of-year dollars? I can't speak for Amazon, but my guess is that they'd tell us it's more about positioning yourself for long-term success. And with more than 4 million people becoming Prime members or starting a free trial over the course of just one week this holiday season, that would certainly fit their narrative.

All of this is not to say that Amazon hasn't put up respectable numbers on the sales front either, but they are a little less forthcoming on those details. For now, this news shows less about how they're winning the holiday game and more about how they're shaping the success metrics behind it. 

For more of the latest thinking and analysis, subscribe to our blog or visit our Amazon Insights page.

 

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